M2 revenues grow six per cent to £31.7m

The boss of managed print and IT services firm M2 today hailed a 'year of progress' which saw sales and earnings grow as it focused on higher-margin work and increased its share of the market in the south.

The boss of managed print and IT services firm M2 today hailed a 'year of progress' which saw sales and earnings grow as it focused on higher-margin work and increased its share of the market in the south.

Chief executive John Taylor said M2, which is based in Old Trafford, reaped the benefits of its investment in its London operations, which doubled in size last year, and its efforts to increase revenues from its managed IT services division.

M2, which is backed by private equity outfit ECI Partners, saw turnover grow six per cent to £31.7m in the year to March 31, with underlying pre-tax profits expected to be about 10 per cent higher than the £2.4m it achieved in the previous 12 months.

Mr Taylor said profits would have been higher but for nearly £1m of investment for long-term growth.

The firm, which has its headquarters on Chester Road, employs 186 staff nationwide, with an office in Glasgow as well as operations in London and Greater Manchester.

Mr Taylor said he expects further strong growth this year, adding that M2 would look to build its business along the M1 corridor between Leeds and Milton Keynes.

The business sells equipment such as scanners, copiers and printers, as well as providing managed IT services.

M2's focus on securing higher-value, multi-year contracts for managed services saw the division generate 55 per cent of group revenues, up from 40 per cent a year earlier.

Mr Taylor said several product launches had helped cement M2's reputation as a specialist in the field.

In addition, it launched a nationwide software system to deploy its engineers more efficiently, cutting fuel costs and saving time.

“Our turnover mix is changing and the underlying trend is very strong,” said Mr Taylor.

“We could have made more profit last year but have been investing in the business for the long-term, as well as incurring set-up costs for some major contracts, the benefits of which will flow into this year.

“We have made good progress and are positioned strongly for another year of growth.”

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